The family of a murder victim in Shaanxi province has withdrawn a lawsuit that sought 200,000 yuan ($31,300) from the father of the man executed for the crime, according to a local court.

Yao Jiaxin, a university student in Xi'an, the capital of Shaanxi province, knocked down Zhang Miao, a female migrant worker, with his vehicle in October 2010. Yao then stabbed Zhang to death with a fruit knife after he saw her trying to read his license plate.

Xi'an's Xincheng district court confirmed that Zhang's family had withdrawn the suit against Yao's family and given up its demand for compensation, according to a report on cntv.cn, the website of China Central Television, on Thursday.

In 2011, Yao's father, Yao Qingwei, offered a 200,000-yuan compensation in a statement on his micro blog. But the money was refused by Zhang's family.

Zhang's family wanted to accept the compensation in February this year, according to a statement by an agent of the family. Zhang's family then filed a lawsuit against Yao Qingwei.

"We are glad to see the result. But we don't understand why the lawsuit was withdrawn," said Ma Yanming, a spokesperson for the Yao family.

The murder made headlines nationally. Yao Jiaxin was put on trial, convicted and executed in 2011.